Scammer convicted in federal tax refund fraud was part of earlier Hawaiian sovereignty scam
ILind Sept 3, 2025: … one of the defendants, Rose Dradi, was also part of a fraudulent foreclosure relief scheme involving David Keanu Sai, a prominent proponent of the idea that the Hawaii Kingdom was never extinguished and now exists as an occupied territory, and Dexter Kaiama, a former Hawaiian attorney who tried to use Sai’s argument as a defense in court cases.
“Sai, who claims to be an expert on sovereignty issues, maintains that the continued existence of the Kingdom of Hawaii means that the State of Hawaii does not exist,” attorneys for the state’s Office of Consumer Protection argued in a 2018 lawsuit. “According to Sai, there are no state laws, and there are no state courts. Sai claims to know all of this first-hand because Sai claims to be an acting minister/diplomat for the Kingdom, and Kaiama is supposedly the Kingdom’s acting attorney general.”
I wrote about the scam in a 2019 post after OCP challenged a foreclosure case in which the homeowners used documents prepared by Sai and Kaiama in an attempt to defeat the lender’s foreclosure. According to OCP, Dradi identified and solicited potential “clients,” and then managed their communication with Sai and Kaiama….
read … Scammer convicted in federal tax refund fraud was part of earlier Hawaiian sovereignty scam | i L i n d
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Four Hawaii Individuals Convicted of Tax Refund Fraud Scheme
News Release from the U.S. Attorney's Office, District of Hawaii, Friday, August 29, 2025
HONOLULU – A federal jury convicted four individuals from Hawaii this week for their roles in a tax refund fraud scheme.
The following is according to court documents and evidence presented at trial: from at least January 2015 through September 2018, Rosemarie Lastimado-Dradi, Marciaminajuanequita Dumlao, Elvah Miranda, and Daniel Miranda conspired to defraud the United States. As part of their scheme, the conspirators filed fraudulent individual tax returns and other tax documents that reported false withholdings from mortgage lenders and then claimed substantial refunds from the IRS. After processing the false returns, the IRS issued refunds totaling over $1 million.
To prevent the IRS from recovering the fraudulently obtained refunds, the conspirators created trusts, opened new bank accounts in the names of business entities and the trusts, and transferred the proceeds between the accounts to conceal them from the government. In addition, Lastimado-Dradi, Dumlao, and Elvah Miranda laundered the fraudulently obtained refunds through a series of bank transactions. Dumlao and Daniel Miranda also each filed for bankruptcy and made false statements under oath in relation to their respective bankruptcy proceedings.
All the defendants were found guilty of conspiracy to defraud the United States. In addition, the jury found Lastimado-Dradi, Dumlao, and Elvah Miranda guilty of money laundering. Daniel Miranda and Dumlao were found guilty of making false statements under oath in a bankruptcy proceeding. Finally, Elvah Miranda was also found guilty of filing a false tax return, and Lastimado-Dradi was found guilty of aiding and assisting in the preparation of false tax returns. Dumlao was acquitted of filing a false tax return and four money laundering counts. Daniel Miranda was acquitted on one count of filing a false return.
Dradi and Dumlao are scheduled to be sentenced on January 26, 2026. Elvah Miranda and Daniel Miranda are scheduled to be sentenced on January 27, 2026. They all face a maximum penalty of five years in prison for conspiracy to defraud the United States. Lastimado-Dradi, Dumlao, and Elvah Miranda each face a maximum penalty of ten years in prison for each count of money laundering. Elvah Miranda faces a maximum penalty of three years in prison for filing a false tax return. Daniel Miranda and Dumlao each face a maximum penalty of five years in prison for each count of making false statements under oath in a bankruptcy proceeding. Lastimado-Dradi faces a maximum penalty of three years in prison for each count of aiding and assisting in the preparation of false tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Sarah A. Kiewlicz and Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorney Gregg Paris Yates for the District of Hawaii are prosecuting the case.
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SA: 4 facing federal prison time for more than $1M tax fraud | Honolulu Star-Advertiser
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